Schumer calls for subprime bailout

Your tax dollars at work, enjoy!

Schumer calls for subprime bailout

Wednesday April 11, 3:35 pm ET
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The federal government should offer troubled borrowers hundreds of millions of dollars to bail them out of subprime mortgage loans, several leading Democratic lawmakers said on Wednesday.
“The federal government can send in an infusion of [money] to prevent foreclosure,” said Charles Schumer, a New York Democrat.

The cash infusion is needed right away and should go to both help fund community groups aiding troubled borrowers and to directly fund bailouts, Schumer said.

Schumer spoke as chairman of the Joint Economic Committee, a joint committee of Congress, and appeared with Democratic senators Robert Menendez of New Jersey and Sherrod Brown of Ohio.

He said he planned to introduce legislation soon.

According to the Center for Responsible Lending, up to 2.4 million subprime borrowers are in danger of losing their homes to foreclosures over the next couple of years.

The number of properties in some stage of foreclosure has already begun to climb. Nationwide, delinquencies increased to 4.95 percent of all outstanding loans during the last quarter of 2006, up from 4.70 a year earlier, according to the Mortgage Bankers Association.

The impact on foreclosures falls not just on individual borrowers; it can affect entire neighborhoods.

According to Allen Fishbein, director of credit and housing policy at the Consumer Federation of America, recent studies have revealed that even a single foreclosure may reduce values of neighboring properties by about 5 percent.

Boarded-up, foreclosed-on houses can be magnets for crime and a deterrent for home buyers and business investors.

Home prices in historic drop.

Most vulnerable subprime markets

Forecast: 100 biggest markets

Oh Please save us from those who insist the government can solve all our problems.
More feel good legislation if you asked me.

Makes me feel all squishy inside for not being a dead beat borrower who is mortgaged out the a$$ sos “chuckie” can do good for his peeps.

A great friggin’ world we live in, no responsibility required, just show up with your hand out then vote early & often for your favorite sugar daddy.

Chuckie doesn’t care, he’s set for life. He will do anything to stay in office. What a bunch of you know what. Nobody bailed me out, let the banks lower their intrest rates that will help more, so people can make ends meet.:roll:

Hey! I lost a bundle in Las Vegas last month…I wanna bail-out too! If Schumer & Hillary are successful with this idiotic proposal then I’m moving to France. Well, maybe that’s too extreme but I’ll do something, Belize maybe. :slight_smile:


That’ll work too I suspect. Laissez les bon temps roulette.

So I guess it was OK for George I to bail out the S&L’s but since that is big business, that is ok. Just not for the little guy, eh? :roll:

Come on now who can really remember all that stuff anyway?

John Mcain perhaps.:twisted:

Why is it that you think it is correct to pit one stupid idea against another stupid idea? Did two wrongs ever make one right? Sheese!

Wrong Buffalo breath;-)(old Johnny Carson bit)

It was wrong then and it’s wrong now. When corporations live in an environment of no risk (ie. goverment bailout)they start acting stupid. Just like other government entities.

No, two wrongs don’t make a right…but three left do.:mrgreen:

I was debating with myself on who would answer first, Brian or Michael. I lost. :wink:

Now there is a pair to draw to.:smiley:

Yes, quite a pair teehee;-)

It is merely Mr. Shumer’s attempt to try to stave off economic Darwinism. He (and the Dems) need the economically stupid (to stupid to survive) in order to get re-elected.

Mortgage Bondholders May Bear Subprime Loan Risk](

April 10 (Bloomberg) – The top Democrat and Republican on the House Financial Services Committee said investors in mortgage bonds should be liable for deceptive loans made by banks.

Democratic Chairman Barney Frank of Massachusetts and Spencer Bachus of Alabama, the committee’s highest-ranking Republican, said such legislation would discourage lenders from extending loans to people with poor credit histories by making it more difficult and expensive for the banks to sell the mortgages.

Gov’t says your pension should eat loses on subprime loans!

sIMPLE mATH - More homedebtors who vote than bond debtors who vote.